Industry gives thumbs up to FIA-FOA

The decision by Futures options Association (FOA) and
Futures Industry Association (FIA) to work more closely
together in an attempt to support the FCM community has been
largely welcomed by the industry.

The decision between the two bodies to establish the new
working arrangement was reached on 28 September (see FO Week
28/09/07), much to the relief of many FCMs and proprietary
trading firms who said they were previously not adequately
represented.

With everything else merging and consolidating it comes
as no surprise that the bodies have moved in a similar
direction, said an md at one leading European FCM.
It can only be a good thing that the two are combining
their strengths. For us we applaud it and we think it was
needed.

Exchanges and clearinghouses, which were not previously
consulted about the decision, were also pleased.
We are fully supportive of the FIA and FOA decision and
consider it a helpful development, said a spokesperson at
LCH-Clearnet.

An exchange source echoed the thoughts of the
clearinghouse.

It is good move for the industry and one that will
benefit all sides, the source said.

That the FCM community will be more closely supported has been
applauded, but some proprietary trading firms remain adamant
that they are still not being assisted or backed to the same
degree.

One source at a prop trading house told FO Week of his ongoing
concerns over the support his industry sector received.
While this will definitely help the large tier one banks
given that its the groups raison detre to
look after them I wonder what or who will lend support to
smaller prop houses, the source said.

By working closer together the two lobby groups have created an
FCM committee which will be headed by Peter Heales of Bear
Stearns who was formally chairman of the FIA European
chapter.

FIAs European Chapter will wind down its operations and
fold into the new framework after a meeting held on 27
September. Its European Chapter operates under arbitrary
by-laws which will be suspended.